Telecom Lead America: SoftBank Corp is in talks with Deutsche Telekom over a possible deal for T-Mobile US, as the Japanese company looks for alternatives to enter the U.S. wireless market if its deal with Sprint Nextel falls apart.
SoftBank and Deutsche Telekom were in talks last year about a deal for T-Mobile USA and have had periodic discussions since then, but those conversations have intensified in recent weeks after Dish Network made a $25.5 billion counterbid for Sprint.
Deutsche Telekom owns 74 percent of T-Mobile US, and one possibility is for SoftBank to buy that stake instead. T-Mobile US has a market value of about $15 billion.
SoftBank still wants to do the Sprint deal after spending months on it, and is looking at a possible T-Mobile transaction only as Plan B.
Meanwhile, the U.S. Department of Justice gave the Federal Communications Commission the green light to make its ruling on SoftBank’s plan to buy 70 percent stake in Sprint Nextel for $20.1 billion.
FCC approval would be the final regulatory hurdle for the deal but it still needs to be approved by shareholders. A June 12 shareholder vote may prove to be trickiest obstacle as SoftBank faces a $25.5 billion counter bid from Dish Network. Many shareholders have said they prefer Dish’s offer.
The Justice Department was reviewing the national security implications of the deal as part of the so-called “Team Telecom” that includes the FBI and the Department of Homeland Security.
It said it had no objections to the deal and so was withdrawing its January 2013 request that the FCC defer its decision. FCC sources say the agency’s review, which focuses on U.S. market implications, is nearing completion but the chairman’s office has yet to circulate a draft approval.
